Journal: TWUK | Section: |
Title: | Issue Date: 02/04/01 |
Author: | Page Number: 8 |
Copyright: Other | |
How long does it take for Customs and Excise to answer a straightforward
question? Three years and counting, it seems. Believe it or not, that’s how
long a couple of the big business travel agencies have been trying to get an
answer from the tax man on whether value added tax is payable on service
charges.
Of course, three years ago, this question was not applicable to most agents.
But now that British Airways’ new payment scheme has come into force, it’s
becoming one of the most talked-about issues.
And finding an answer is like looking for a needle in a haystack.
Many agents are getting conflicting advice. First Customs and Excise said it
didn’t know whether agents could charge for the service. Then some local tax
offices told agents they could charge, other agents in different parts of the
country were told they couldn’t.
Trade bodies like ABTA and the Guild of Business Travel Agents have also
been trying to establish what the correct position is.
Meanwhile, agents who have turned to BA for advice have found the story
changing at various times.
For the record, BA’s line now is that it believes VATis not chargeable but,
to be on the safe side, it is now referring agents to Customs and Excise to get
the definitive answer.
This could prove expensive all round. Let’s hope it doesn’t take another
three years to clear up this uncertainty.